How do peace support operations impact on conflict region's economies?


  • Johan Tejpar

Publiceringsdatum: 2009-06-17

Rapportnummer: FOI-R--2767--SE

Sidor: 40

Skriven på: Engelska


  • peace support operations
  • economic impact
  • armed conflicts
  • shadow economy
  • war economy


Peace support operations (PSO) are normally carried out in poor countries with large informal markets and little state capacity. This situation makes these countries very susceptible to external shocks such as the economic impact of PSOs. This report anallyses PSOs economic impact on conflict regions. This report indicates that PSOs have an economic impact both locally and regionally. the effects are both positive and negative. The demand and supply of goods and services, the labour market and the housing market are some aspects affected by PSOs. As local markets are intertwined with national and regional ones, the effects can spread throughout the country and even to the regional neighbours. Some of the aspects impinged on here are changed trade and migration patterns. Different PSOs seem to inflict differently on the economy. the area is of importance as increased understanding of what actions lead to what types of economic effects can help identify spoilers and avoid PSO actions and policies from being counterproductive. It seems as if the comprehensive approach will continue to prevail over the foreseeable future. This means that one of the challenges for future PSOs will be to find methods that minimise the economic impact, or at least isolate it to the local conflict area.